Utility Incoterms

• The incoterms specifies the respective responsibilities but don't define the moment where is tranférée the property
• The incoterms fixes the sharing of the costs and fixes the division of the risks.

Incoterms: four groups exist

Group E: EX

EXW: The salesman fulfilled his obligation of delivery when the goods are placed at the disposal in its establishment (workshop, factory, warehouse, etc). The purchaser supports all the expenses and inherent risks with the routing of the goods of the establishment of the salesman to the desired destination. This term represents the obligation minimum for the salesman.

Group F: Free

FCA: The salesman fulfilled his obligation of delivery when it gave the goods, cleared with export, with the conveyor appointed by the purchaser at the agreed point. The purchaser chooses the means of transport and the conveyor. He pays principal transport. The transfer of the expenses and risks intervenes at the time when the conveyor deals with the goods.

FAS:

The salesman fulfilled his obligation of delivery when the goods were placed along the ship, on the quay with the wearing of agreed loading. The purchaser must support all the expenses and risks of loss, of damage which the goods can run. Term FAS imposes to the salesman the obligation to clear the goods with export.

FOB:

The salesman fulfilled his obligation of delivery when the goods are placed aboard ship to the wearing of indicated loading. The salesman clears the goods with export. The purchaser chooses the ship and pays the ocean freight. The transfer of the expenses and the risks is placed in the passing of the rail of the ship at the wearing of loading.

Group C: Cost or Carriage

CFR:

The salesman must choose the ship and pay the expenses and freight necessary to dispatch the goods with the wearing of destination indicated. The formalities of export fall to the salesman. The point of transfer of risk is the same one as in FOB.

CIF:

The salesman has the same obligations that in CFR but it must moreover provide one marine insurance against the risk of loss or damage of the goods during transport. The formalities of export fall to the salesman. The goods travel, on the maritime transport or river, with the risks and dangers of the purchaser, as of the rail crossed with the wearing of loading.

CPT:

The salesman chooses the means of transport and pay freight for the carriage of the goods until the agreed destination. He clears the goods with export. When the goods are given principal conveyor, the risks are transferred from the salesman to the purchaser.

CIP:

The salesman has the same obligations that in CPT, but it must moreover provide one insurance against the risk of loss or damage which the goods during transport can run. The salesman clears the goods with export.

Group D: Delivred

DAF:

The salesman fulfilled his obligation of delivery when the goods were delivered, cleared with export, with the place agreed with the border, but before the border of the adjacent country, on the freight vehicle of approach not discharged. The transfer of the expenses and risks is done with the crossing of frontiers. The customs formalities of importation and the payment of the rights and taxes of customs due to the importation fall on the purchaser.

DES:

The salesman fulfilled his obligation of delivery, when the goods not cleared by Customs with the importation, is availability of the purchaser aboard ship to the agreed wearing of destination. The salesman supports all the expenses and inherent risks with the routing of the goods to the agreed wearing of destination.

DEQ:

The salesman fulfilled his obligation of delivery when it puts the goods, not cleared through customs with the importation, with the provision of the purchaser on the quay, with the agreed wearing of destination. The purchaser clears the goods with the importation. The transfer of the expenses and risks is made when the goods are on the quay of the agreed port.

DDP:

Contrary to term EXW to the factory, this term indicates the maximum obligation of the salesman. The salesman does all, including the taking out of bond with the importation and the payment of the rights and taxes exigible. The transfer of the expenses and risks is done with the delivery in the purchaser. Unloading falls in expenses and risks on the purchaser.

DDU:

The salesman delivers the goods to the purchaser, not cleared through customs with the importation, and not discharged on arrival from any freight vehicle, instead of destination agreed. The purchaser occupies himself with his risks and expenses, of the achievement of the customs formalities of importation and the payment of the rights and taxes of importation.

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